Topic 4: UPDATE: MODEL PORTFOLIOS

We ran our model portfolio engine to determine the strategic allocations for FY23. The engine works around the fundamental principle of modern portfolio theory, which provides a framework to create a portfolio of different asset classes such that the expected return is maximized for a given level of risk. Some of the observations

  • Our model portfolio shows an increase in allocation towards Equities (both domestic & foreign markets) across all profiles and a decrease in Fixed Income allocation. This has been on account of the change in the risk-reward characteristic of equity markets
  • Within domestic equities, we continue to hold higher allocation to large caps. Allocation is nearly equal between ‘large-cap’ and ‘midcap & small caps’
  • Within domestic equities, we continue to hold higher allocation to large caps. Allocation is nearly equal between ‘large-cap’ and ‘midcap & small caps’

Asset Class

Sub Asset Class

Sub Asset Class

Aggressive

Assertive

Prudent

Cautious

Conservative

 

Equity

 

Large cap

 

Mirae Asset Large Cap Fund

 

27.0

 

22.5

 

20.0

 

13.0

 

7.0

 

Midcap

Invesco India Midcap Fund

18.0

13.5

10.0

7.5

5.0

 

Small cap

Axis Small Cap Fund

5.5

5.0

5.0

6.0

0.0

 

 

Union Small Cap Fund

5.5

5.0

5.0

0.0

0.0

 

Sector/Theme

DSP Natural Resource & New Energy Fund

3.5

2.5

2.5

0.0

0.0

 

 

SBI Infrastructure Fund

3.5

2.5

2.5

0.0

0.0

Fixed Income

Corporate Bond

Aditya Birla SL Corp Bond Fund

0.0

5.0

5.0

10.0

15.0

Accrual

Banking & PSU

Axis Banking & PSU Debt Fund

0.0

0.0

0.0

10.0

10.0

 

 

IDFC Banking & PSU Debt Fund

3.5

5.0

7.5

12.5

15.0

 

 

Nippon India Banking & PSU Debt Fund

0.0

0.0

0.0

0.0

10.0

 

Corporate FD

Mahindra Finance FD

3.5

9.0

12.5

15.0

15.0

Gold / Commodities

ETF

Nippon India Gold Savings Fund

5.0

5.0

5.0

5.0

5.0

 

Thematic

ICICI Pru Commodities Fund

5.0

5.0

5.0

5.0

5.0

International Equity

US Equities

Motilal Oswal Nasdaq 100 FoF

15.0

15.0

15.0

11.0

8.0

Cash

Ultra Short Term

Kotak Savings Fund

5.0

5.0

5.0

5.0

5.0


Note: The funds selected might not be the exact fit but are the best representative for the above themes/sectors. Also, we have not added any thematic/sector allocation to Conservative & Cautious risk profiles

The information contained herein (the “Information”) may not be reproduced or disseminated in whole or in part without prior written permission from the Company. The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared based on publicly available information, internally developed data and other sources believed to be reliable. The directors, employees, affiliates or representatives (“Entities & their affiliates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy, reliability and is not responsible for any errors or omissions or for the results obtained from the use of such information. Readers are advised to rely on their own analysis, interpretations & investigations. Certain statements made in this presentation may not be based on historical information or facts and may be forward looking statements including those relating to general business plans and strategy, future financial condition and growth prospects, and future developments in industries and competitive and regulatory environments. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, they do involve several assumptions, risks, and uncertainties. Readers are also advised to seek independent professional advice to arrive at an informed investment decision. Entities & their affiliates including persons involved in the preparation or issuance of this document shall not be liable in any way for direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of the lost profits arising from the information contained in this material. Readers alone shall be fully responsible for any decision taken based on this document.
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